Short-term texture of market is still positive
83,500 would act as key support zone, above this it could bounce back to 84,000-84,200; below 83,500, it could slip to 83,000-82,900
Short-term texture of market is still positive
Mumbai: The benchmark indices witnessed profit booking at higher levels. The Sensex was down by 559 points. Among sectors, the IT index lost the most, shedding over 5 percent, whereas despite weak market sentiment, intraday buying was seen in selective financial stocks.
Technically, after a weak opening, the market consistently faced selling pressure at higher levels. A bearish candle on daily charts and weak intraday formations indicate further weakness. However, the short-term texture of the market is still positive.
Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We believe that the 50-day SMA (Simple Moving Average) at 83,500 would act as a key support zone for traders. If the market manages to trade above this level, it could bounce back to 84,000-84,200. On the flip side, if it falls below 83,500, it could slip to 83,000-82,900.”
